Senator Kamala Harris and Andrew Yang (Photographer: Anthony Lanzilote/Bloomberg)
© 2019 Bloomberg Finance LP
Kamala Harris and Andrew Yang renewed their call this week for you to get a $2,000 a month stimulus check.
Here’s what you need to know.
Monthly Stimulus Payments
At a virtual town hall this week hosted by The Appeal, Sen. Harris (D-CA) and Yang, both of whom were 2020 presidential candidates, championed a monthly stimulus payment for the remainder of the COVID-19 pandemic. Both Harris and Yang have supported monthly stimulus checks, and Yang, in particular, centered his presidential campaign on the idea of universal basic income. Harris and Yang said that given more than 40 million unemployed and a struggling economy, now is the right time to create a “safety net” so Americans don’t fall into poverty or further into poverty.
Harris Plan: The Monthly Economic Crisis Support Act
Harris, along with Sen. Bernie Sanders (I-VT) and Sen. Ed Markey (D-MA) introduced the Monthly Economic Crisis Support Act, which would:
- Give up to $2,000 a month to anyone earning up to $120,000 per year.
- The monthly payment begins to phase out starting at $100,000 per year.
- Married couple who file jointly would receive up to $4,000.
- You can receive $2,000 for each dependent (maximum three dependents).
- The legislation would be retroactive to March 2020.
- Every U.S. resident can receive payment, regardless if they file taxes or have a Social Security number.
- The payments would last until three months after the end of the COVID-19 pandemic.
“The government should be here for the people in a moment of crisis,” Harris, a potential running mate for Joe Biden, said. “People should be able to count on their government to see them and to create a safety net for them, so that these people don’t fall into poverty—or further into poverty—during the course of this pandemic.”
Yang Plan: $1,000 A Month For Life
Yang proposed $1,000 a month for life through a “Freedom Dividend.” Under Yang’s plan:
- Every U.S. citizen over the age of 18 would receive $1,000 a month, or $12,000 per year.
- There are no requirements to receive the money.
- These are guaranteed payments and would continue in perpetuity each month
Yang said he would pay for universal basic income through four sources of income:
1. Current welfare spending
Yang says that those who already receive social benefits can choose to keep their current benefits or receive $1,000 a month, but could not receive both. The extra income can help individuals avoid jails and hospitals.
2. Value-Added Tax
Yang estimates that a 10% value-added tax (VAT) on products or services can generate $800 billion of annual revenue.
3. Economic growth
With stable, monthly income, Yang believes recipients will spend their money in the economic. This economic growth can generate $800-$900 billion, according to Yang.
Yang would fund the remaining cost of the Freedom Dividend through a financial transactions tax, by ending favorable treatment for capital gains and carried interest, by removing the cap on Social Security, and through a carbon fee.
“Our problems have accelerated where we have experienced 10 years of displacement in 10 weeks,” Yang said. “But, we have a real chance here to alleviate poverty. Right, there are multiple bills that would put $2,000 a month into the hands of every American for the duration of the pandemic, which we all know may extend for months, even years.”
Will there be a $2,000 a month stimulus check?
There have been multiple proposals for a $2,000 a month stimulus check. Mark Cuban proposed giving Americans $1,000 every two weeks. However, Senate Republicans have opposed monthly stimulus checks and none of the current proposals, including the Heroes Act, are expected to pass in their current form. Senate Majority Mitch McConnell has said the next stimulus bill will be the last and it won’t include a monthly stimulus check. Some Senate Democrats are focused on extending unemployment benefits (Sen. Ron Wyden) or having a one-time stimulus check (Sen. Ben Cardin) that would be more targeted at Americans who are struggling the most.